Why is car insurance so expensive for younger drivers? This article answers the question and provides some useful advice.
Most people learn to drive between the ages of 17 and 25 and as soon as they’ve passed their driving test they think they’re 120% passed as competant drivers. They can take the world on at driving. They’re budding rally drivers and F1 proteges. They know itn all! WRONG! Just ask the car insurers and consider four facts:
So it’s no surprise that any young driver will be classed as a higher risk than older, and more experienced, drivers on the road. Consequently they can expect to pay significantly more for their car insurance premiums. And it’s not just that the basic premium is higher, relatively few young drivers build up many years of No Claims Bonus. This all conspires to very expensive car insuranve. Add this to any penalty pointsthey accumulateand finding competitive high risk car insurance can become a major problem.
This means that to stand any chance of getting a reasonable car insurance quote you have to shop around. If you don't you can find yourself forking out hundreds of pounds more than you need to. All it takes is 30 minutes searching online. Some car insurers won’t touch young drivers (which they normally defined as under 25 – but if the car is relatively powerful, that can go up to 30.)
But it’s adviseable to start out on your driving career with a low powered car and a low engine capacity. And it’s also good advice to get quotes for any car you’re interested in buying before you buy it. Then you can be sure that you can get insurance for that car and at a price you can afford - before splash out buying the vehicle!
The fact is that these days all car insurance is expensive, but younger drivers are quite rightly perceived to be the highest risk. If you buy an old banger to get around in, it can even cost more to insure the car than it cost to buy!
When you add the cost of insurance to the costs of fuel and road tax many youngsters are priced out of running their own car.
And then there’s the problem of financing the car. The credit crunch has not only hit mortgages. Most lenders are now very choosey when it comes to car finance. Unless you have an exlempory credit record you’ll find the interest charges are very high. If you do have an impaired credit history the chances are that you will not find a lender willing to let you have any loan.
The green brigade will probably be quite happy to see people priced off the road onto public transport but I suspect few young drivers will share their enthusiasm.
Uninsured drivers increase the cost of car insurance
Have you ever driven without car insurance? Many people do and it’s become a big problem – not only for fellow road users but also the insurance industry. This article discusses the situation and proposes some solutions.Driving conditions and trends affecting car insurance
This article contains a wide range of statistics which paint a picture of driving conditions in the UK in 2007.Preventing Drink Driving.
Drink driving is a persistant problem in the UK. It’s puts up the cost of car insurance and is the cause thousands of accidents. So what can be done about it? This article explores the problem.